Corporate Social Responsibility (for MBAs)

Developing a CSR Strategy

Assessment of Organization

• The organization’s values and ethics
• The internal and external drivers motivating the organization to undertake a more systematic approach to CSR
• Key CSR issues that are affecting or could affect the organization
• Key stakeholders who are engaged/need to be engaged
• The current corporate decision making structure and its strengths and inadequacies in terms of  implementing a more integrated CSR approach.

Assessment Guidelines

• Assemble a CSR leadership team
• Develop working definition of CSR
• Review corporate documents (mission states, codes of conduct, policies etc), processes and activities
• Identify and engage key stakeholders

Developing CSR Strategy

• Build support with senior management and employees
• Research what other businesses are doing
• Prepare a Matrix proposed CSR actions
• Develop options for proceeding and the business case for them
• Decide on direction (linked to business-paper & environment etc.), approach (how to move into that direction) and focus areas (alignment with business objectives-Maruti training on safe driving methods)

Business Case for CSR-Key elements
Possible leverage points on which CSR gains may be made
Areas in which organizational could potentially gain a competitive edge
Areas in which stakeholders might have particular influence
Short term and long term goals
Estimated costs of implementing each option
Anticipated Benefits
Opportunities for cost reduction
Broader changes the organization would need to make
Any risks or threats each option poses
Implications of each option for new developments

Implementing CSR Commitments

Develop an integrated CSR decision making structure
Prepare and implement a CSR business plan
Set measurable targets and identify performance measures
Engage employees and others to whom CSR commitments apply
Design and conduct CSR training
Establish mechanisms for addressing problematic behavior
Create internal and external communications plans

Areas of CSR implementation

• Business Ethics
• Corporate Structure & Governance
• Human Resource
• Labor & Human Rights
• Environmental Management
• Community Involvement & Economic Development
• Accountability

CSR in the Market Place

• Disclosure of labeling & packaging
• Pricing
• Marketing & Advertising
• Integrity of Product Manufacturing & Quality
• Distribution & Selling Practices

Benefits of CSR @ Market Place

• Risk Management
• Product Differentiation /Product Recall
• Customer Loyalty
• Increase in Public Credibility
• Global Marketplace Advantages

CSR @ Workplace-Issues

• Remuneration
• Ethical Human Resource Practices
• Health and Safety
• Work Life Balance
• Age of employees
• Downsizing
• Diversity in Work Culture
• Privacy

CSR Benefits @ Workplace

• Increase in Employee Productivity/Retention
• Credibility and Recognition
• Risk Management
• Costs and Returns
• Lesser Government Intervention

Environmental CSR-Issues

• Air Pollution
• Water Pollution
• Soil Pollution

• Bio Diversity
• Destruction of Livelihoods
• Industrial Accidents
• Industrial Material Disposal
• E-Wastes

Benefits

• Reduction of Risks & Financial Penalties
• Costs and Returns
• Access to New Market-Carbon Credit
• Lesser Government Intervention
• Technological Innovation
• Credibility and Recognition
• Global Marketplace Advantages

Selection of NGOs

• It must demonstrate competence and good results over time
• It must have a development capability in order to be able to advance the project to a bigger scale
• It must have stable and reliable reputation
• Its structure must be professionally managed
• It must hold a predominant position in its sector
• It must be capable of forming multilateral partnerships
• It must enjoy complete independence from the company or the authorities